Nifty’s Narrow Movement, Jio Financial’s Surge, Gokaldas Exports’ Acquisition

Technical Overview – Nifty 50

Nifty50 on the 29th Aug witnessed a flat opening and traded within the very narrow range of 30 – 50 points and closed with a marginal gain of 36 points. The benchmark index formed a small candle which suggests a lack of interest among the traders.
The index on the daily chart is trading within the rectangle pattern and got tangled between 50 & 21 EMA. The momentum oscillator RSI (14) has been hovering below 50 levels for the past couple of weeks suggesting weak momentum on the cards.
The immediate support for the index is placed near the lower band of the rectangle pattern at 19200 levels. A sustained move below the said levels will witness a breakdown in the index. The hurdle for the index is placed near its short-term EMA at 19,450 levels.

Technical Overview – Bank Nifty

The Banking Index on the 29th Aug witnessed a flat opening and traded within the very narrow range of 100 -150 points and closed flat near its previous day’s close. The index on the daily chart is trading within the rectangle pattern and got tangled between 50 & 21 EMA.
The momentum oscillator RSI (14) has been hovering below 50 levels for the past couple of weeks suggesting weak momentum on the cards. Maximum Call Open Interest Build Up witnessed in 44500-45000 Call & on the Put Side Maximum Open Interest is being witnessed in 44500-43000 levels. The PCR ratio holds at 0.90.
The immediate support for the Banking index is placed near the lower band of the rectangle pattern at 44000 levels. A sustained move below the said levels will witness a breakdown in the Banking index. The hurdle for the index is placed near the upper band of the rectangle pattern at 45,000 levels.

Indian markets:

• Domestic equity markets notch modest gains on Tuesday, Nifty index ends above 19,300.
• Investor engagement remains restrained, likely due to absence of fresh positive cues.
• Foreign institutional investors continue to withdraw funds, adding to cautious trader stance.
• Sectoral performance exhibits a mix: metals and realty sectors advance, PSU banks and FMCG sectors dip slightly.
• Midcap and smallcap stocks attract buying interest, fostering positive sentiment.
• Despite global markets showing stability, the prevailing sentiment remains pessimistic.

Global Markets

• Markets in Europe and Asia showed gains on Tuesday, following the upward movement of US equities. Traders are eagerly awaiting a series of economic figures in the coming days to gain insights into the outlook for global central bank policy. Investors are particularly focused on the course of monetary policy, as Federal Reserve Chairman Jerome Powell recently reiterated that the central bank may further increase interest rates if inflation does not return to the target level. While Powell indicated that the Fed could be flexible, he emphasized that they still have a way to go to combat inflation.
• Wall Street closed higher on Monday, with US Treasury yields retracing earlier gains. This week is expected to be light in trading volume but heavy in economic data that could influence whether the Federal Reserve will pause on rate hikes in September.

Stocks in Spotlight

• Jio Financial Services rose over 2 percent, as 49.66 million shares representing a 0.8 percent stake were traded in two transactions. By midday, the stock was priced at Rs 216.10 on the NSE, marking a 2.34 percent increase from the previous close. This development follows Reliance Industries’ Chairman Mukesh Ambani’s announcement in the annual general meeting, where he revealed Jio Financial Services’ strategic entry into the insurance sector. The company aims to provide a range of insurance products, including life, general, and health insurance, with potential collaborations with global partners.
• Gokaldas Exports (GEL) surged 20% hitting upper circuit. The company, along with its wholly owned subsidiaries, has announced an acquisition deal for Atraco Group (Atraco), a prominent apparel manufacturer renowned for its market presence and customer ties in the U.S. and Europe. The transaction, valued at US$ 55 million in terms of equity, is set to be financed using a combination of debt and internal resources
• Gulf Oil Lubricants India Limited witnessed a 3 percent surge in its shares as the increase followed the company’s acquisition of a controlling stake of 51 percent in Tirex Transmission, a significant player in the Indian market for manufacturing DC fast chargers for electric vehicles (EVs). Gulf Oil’s move, as disclosed in an exchange filing on August 28, positions them to tap into the growing EV sector in India. Tirex Transmission caters to various clients, including PSUs, charge point operators, automotive OEMs, and retail, offering a diverse range of chargers for all types of electric vehicles, including e-Buses

News from the IPO world🌐

• Pyramid Technoplast lists at 13% premium to IPO price
• CPS shapers IPO subscribed 15.32 times on debut
• Chennai based Basilic Fly Studio to launch IPO on September 1

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